Most analysts say that higher inflation means rate cuts are off the table for Fed Chair Kevin Warsh, even though President Trump still says he still wants lower rates.
A number of nonbanks involved in the ABS market have opted for bank charters in recent years. The capital requirements and oversight that come with that status will benefit nonbank ABS, Moody’s said.
Federal regulators are open to adjusting the 250% risk weight that currently applies to bank holdings of mortgage servicing rights. Trade groups are calling for it to be reduced to 100%.